There is hope on the international scene that the United States and Iran may finally have a peace deal that, while not making either side entirely happy, will at lease stick. That pushed oil prices lower to start this holiday week.
In early Tuesday trade, West Texas Crude and Brent Crude were mixed, with WTI trading lower by 4% to $92 per barrel, while Brent was higher by 2% to $98 a barrel. Patrick DeHaan with Gasbuddy.com noted as he looks back on the first five months of this year, unpredictability has been the name of the game.
“Especially made worse after the U.S. went after and attacked Iran and then after Iran essentially closed off the Strait of Hormuz,” DeHaan said. “It’s been very unpredictable, unknowing how long the situation will last. And that is probably something that will be consistent until the situation moves on, whether or not the Strait will be reopened, how quickly are going to have a major impact on consumers, not only at the gas pump, but as they go to the grocery store and as they buy goods for their home as they experience the rise in diesel prices indirectly, just not great news when it comes to those refined product prices.”
When it comes to other international issues, whether that’s Russia/Ukraine or Venezuela, DeHaan said those can bubble to the top, impacting oil prices. But, until U.S./Iran is completely resolved, he feels many of these other issues will remain on the back burner.
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